At it's core, Node.js is a stripped-down, highly customizable server engine -- a proto-server, if you will -- because out of the box it doesn't do anything until you set it up. This proto-server processes in a loop, ready to accept and respond to requests. Any of those requests themselves may initiate other requests to some other part of the system, such as to read a file off of disk or to send a signal to spin a motor on a robot arm. That loop, known as the event loop, is the "runtime" part.
Where does Node.js not work so well? It's not totally appropriate in places where a single-threaded calculation is going to be the holdup, like some kinds of successive approximation or classification. In those instances, it's more efficient for Node.js to drop the request to an independent library that's dedicated to the task, where it can be distributed across hundreds or thousands of processors.
Node.js is maturing quickly and is being deployed in more and more mission-critical and revenue-critical systems, such as eCommerce Black Friday infrastructures. It's easy to get started with Node.js, and yet Node.js is deep enough to handle modern Web complexities. If you're building your next generation Web site -- especially APIs for mobile and Web integration -- or if you are creating something new that depends on underlying services itself, Node.js is a runtime system that could very well work for you.
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